Factors affecting E Commerce

Depending upon the types & effects, they can be broadly classified into two types:

Facilitators Inhibitors

Facilitators

Facilitator factors
Community driven facilitators like: Pressure from Foreign buyers and domestic supply chain partners. Export-Import companies interacting with Foreign clients have to match their business process as per client requirements.

Facilitator factors
Process driven facilitators like: Proactive role by the Industry and Business Process Re-engineering. Readiness of concerned Government Agencies

Facilitator factors
Technology Factors like: Acceptance of electronic trading by Law. Expansion of Internet usage by the firms. Induction of IT infrastructure by most companies and industries. Reduction in online security threats.

Facilitator factors
Organizational Factors like: Strategic advantages including enhanced business opportunities offered by electronic transactions. Use of related technology like Bar Coding etc.

Facilitator factors
Cost Driven Facilitators like: Cost savings under electronic mode over paper mode of transactions leads to reduction in storage spaces for bulky files and records. Discounts and Incentives for electronic transactions compared to contemporary transactions.

Inhibitors

Inhibitor factors
Technology Inhibitors like: Infrastructural constraints like small number of added networks, poor communication facilities etc. Low level of Internet Accessibility. Lack of technical knowledge in the workforce.

Inhibitor factors
Resource Inhibitors like: Lack of Management Interest. Lack of professional and technical expertise regarding process re-engineering. Lack of funds for induction of e-commerce in the business process of the company. Reluctance from the employees due to sense of job insecurity.

Inhibitor factors
Readiness Inhibitors like: Difficulty in assessing benefits accrued by Electronic Transactions. Low level of readiness by contributors like customers, banks, suppliers, etc. Low level of IT functional linkages in the business process.

Inhibitor factors
High Prices of E Commerce software, also communication software and Internet charges, etc. Lack of security of E commerce transaction over the Internet. Lack of Legal Acceptance of E commerce Transactions.

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